Bank of England split on rates as it warns Brexit deal would hit growth

epa02772542 (FILE) A file picture dated 04 December 2008 shows Bank of England twenty pound notes in London, Britain. Reports state on 09 June 2011 that British interest rates have been kept at the record low of 0.5 per cent again by the Bank of England's Monetary Policy Committee. It is the 27th straight month that the bank has left rates unchanged. EPA/ANDY RAIN *** Local Caption *** 00000402017322

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The Bank of England has warned that weak global growth and trade barriers created by the government’s Brexit deal will hit the UK economy.

It came as two Bank policymakers called for an immediate interest rate cut to support growth.

The Bank voted 7-2 to keep interest rates on hold at 0.75%.

The Bank said the new EU withdrawal agreement struck by Prime Minister Boris Johnson had reduced the likelihood of a no-deal Brexit.

The Monetary Policy Committee (MPC) that sets interest rates said this would end some of the uncertainty facing businesses and households.

However, policymakers added that the transition to a new trade deal would introduce new customs checks and regulatory barriers.

The MPC said its assumption of a Canada-style “deep free-trade agreement” between the UK and EU would “raise administrative costs for firms” doing business with the continent.


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